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• W2599530406 abstract "INTRODUCTION I. THE PROBLEMATIC AND PERVERSE INCENTIVES OF CLASS ACTION SETTLEMENTS II. COURTS HAVE NO EXPERTISE IN EVALUATING REGULATORY-STYLE INIUNCTIVE REMEDIES A. The Consent Decree as Historical Foundation B. Regulation through Civil Litigation C. Hot fuel Litigation D. Pearson v. NBTY E. American Express Merchant Litigation III. PROSPECTIVE INJUNCTIVE REMEDIES MAKE BAD LAW AS WELL AS BAD POLICY A. Improper Regulatory Preemption of Future Claims B. Violation of Counsel's Fiduciary Duty to Absent Class Members C. Potential Violations of Rule 23(a)(4) D. Standing Problems IV. COUNTERARGUMENTS CONCLUSION INTRODUCTION In 2012 District of Kansas approved settlement of class action against Costco brought on behalf of its gasoline customers. (1) Gasoline, like most liquids, is sold by volume, rather than weight. And, like most liquids, gasoline is subject to laws of physics that dictate that it will expand as temperature increases if pressure is held constant. (2) Plaintiffs sued dozens of retailers for failing to disclose this effect of increasing temperatures on number of gasoline molecules present in gallon of gas. (3) Under plaintiffs' theory, because motor fuel expands when heated, [a] consumer who buys gallon of fuel at warmer temperature unknowingly receives less fuel (fewer molecules and less mass) than consumer who purchases gallon of that same fuel at cooler temperature. (4) As part of settlement--which paid zero dollars to millions of absent class members, while plaintiffs' attorneys filed still-pending fee request for $10 million--Costco agreed to convert its motor fuel dispensers in states where it purchases fuel on temperature-adjusted basis to automatic temperature compensation (ATC) dispensers and to install ATC dispensers at any new retail stations it opens. (5) The upshot of this development is that customers who purchase gasoline at higher temperatures now have better deal than they used to and those who purchase it at lower temperatures worse deal. It should be clear that for many repeat customers over time this is likely wash, except insofar as all consumers must now absorb, through increased prices, costs of new pumps. (6) At first blush, Costco's expensive conversion of its fuel equipment appears to be typical instance of now well-established phenomenon of social policymaking through class action litigation. Scholars of mass torts have spent better part of last half-century debating whether class action suit enabled by Rule 23 of Federal Rules of Civil Procedure should be considered device for the private litigant who is motivated in his attempt to serve public interest primarily, if not exclusively, by idealistic or communitarian concerns, (7) case of a rent-seeking entrepreneur pursuing her own interests with little oversight by her principals, (8) or some combination of two. (9) Despite controversy and criticism, however, class action is alive and well. And specifically injunctive remedy--requiring, as consideration for class members' release of claims in lieu of or in addition to cash, defendant to change some aspect of its business practice--has become common feature of class action settlements. (10) Yet Costco settlement presents taxonomicallv distinct remedial category of injunction that has, as of vet, not generally been considered by courts and scholars as such: prospective injunctive remedy--that is, injunction that functions solely with respect to future transactions between defendant and its customers, be they class members or not. This Article will demonstrate how prospective injunctive remedy operates and argue that, in light of unique policy and legal problems it creates, judges should rarely approve private-party class action settlements containing one. …" @default.
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• W2599530406 date "2016-06-22" @default.
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• W2599530406 title "Prospective Injunctive Relief and Class Settlements" @default.
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